S&P downgrades Ulterra

Standard & Poor's said it lowered the corporate credit rating on Ulterra Holdings Inc. to CCC+ from B-.

The agency also said it lowered the senior secured debt rating to B- from B. The recovery rating remains at 2, indicating 70% to 90% expected recovery in a default.

The outlook is developing.

The downgrade reflects the company's weak liquidity and a concern that sources of cash could be insufficient to cover its obligations or any unforeseen events, S&P said.

Ulterra had a weak second quarter, as the seasonal decline in Canada was larger than expected, the agency said, and the company burned through more than $7 million of liquidity.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.